Emerging Markets

The end of cheap money reveals global debt problem

3 Oct 2022

Borrowing has risen to more than 250% of world GDP, far more than before the 2008 financial crisis. Rising interest rates and low growth make this burden harder to bear, causing economic stress in Europe, China and the Global South. This will poison geopolitics, says Hugo Dixon.

Strong market an apt tribute to India’s Big Bull

15 Aug 2022

Billionaire investor Rakesh Jhunjhunwala, who has died aged 62, led the way for first-time buyers. This horde is now propping up Indian stocks at rich valuations, muting the impact of foreign selling amid U.S. rate hikes. If the enthusiasm holds, it will mark a coming of age.

India M&A veto plans will shake world’s dealmakers

5 Aug 2022

New Delhi is set to give its antitrust enforcer a bigger say on overseas deals. It may have missed the boat in stymieing tie-ups among Big Tech, which have a huge user-base in the country. If India, like China, uses those powers for industrial aims, it will have a chilling effect.

Capital Calls: Heineken’s post-Covid bounce

1 Aug 2022

Concise views on global finance: Beer drinkers are quaffing more than before the pandemic, despite higher prices. But the Dutch brewer’s decision to scrap its 2023 operating profit margin target suggests it can’t entirely escape rising costs.

Inflation-shy investors try on “least dirty shirt”

9 Jun 2022

Interest rates in the developed world lag far behind rising prices. That’s sent savers flocking to traditional safe havens to preserve their capital. Edward Chancellor argues that emerging-market currencies may offer a more appealing alternative to financial repression at home.

Emerging markets offer dubious investment appeal

12 May 2022

Stocks from developing economies have fallen as fast as U.S. equities. While they offer diversification benefits, China’s inclusion will weigh on future returns, Edward Chancellor argues. At the very least, investors should remove the People’s Republic from their portfolios.

Selloff shows China’s lack of investment traction

6 May 2022

U.S.-listed Chinese stocks underperformed during Thursday’s New York bloodbath, tumbling 8%. Beijing still hasn’t convinced global funds it’s more than just another volatile emerging market. Slowing growth and an inflationary environment will make it hard to change their minds.

China takes new tack on emerging market debt

27 Apr 2022

Beijing has agreed to work with the Paris Club of official creditors to clear up Zambia’s $17.3 bln debt mess. That’s a major shift from the bilateral approach it usually adopts. An even bigger sign of progress would be accepting a haircut on the $5.8 bln that China is owed.

Indonesia’s EV dream gets $15 bln spark of reality

20 Apr 2022

South Korea’s LGES, China’s CATL and partners plan to build comprehensive battery supply chains in the country. That’ll please Jakarta, whose bold electrification goals need industry buy-in. With supply chains stressed, it’s a well-timed boost for the wannabe production hub.

GoTo IPO will road-test range of tech rout

15 Mar 2022

The SoftBank-backed superapp is eyeing a $29 bln valuation in a Jakarta listing. Given rival Grab’s disastrous New York debut and Sea’s share price plunge, the timing may bruise its new backers. But waiting much longer risks eroding GoTo’s strong market position.

South Korea kicks off Asian welfare state debate

9 Mar 2022

A proposed universal basic income scheme has taken centre stage in the country's tightly contested presidential election. Given rising inequality and weak social safety nets, voters are warming to the radical idea. Other stingy governments in the region might take note.

Russia exodus tests fund managers’ liquidity limit

2 Mar 2022

Western funds worth over $4 bln have suspended redemptions after Moscow froze equity trading, while MSCI may kick the country out of its emerging market benchmarks. The crisis once again exposes the flimsiness of asset managers’ promise that customers can sell when they want.

Capital Calls: Ford’s private equity playbook

2 Mar 2022

Concise views on global finance: The Detroit automaker’s reorganization plan makes explicit the goal of squeezing its traditional car business for cash to fund its electric future.

Capital Calls: Albertsons, Target

1 Mar 2022

Concise views on global finance: Supermarket chain Albertsons considers repackaging itself – again. Meanwhile, rival U.S. retailer Target beats earnings expectations, but with a performance at odds with its cut-price valuation.

India Insight: Digital diplomacy builds bridges

21 Feb 2022

Open architecture underpinning the country’s booming fintech market is being adopted by Nepal and partly by Bhutan. Google also recommended it to the U.S. Fed. It’s a cheaper way to court allies than China’s Belt and Road projects. The soft power returns are valuable too.

Capital Calls: EVs run over ethanol and gas

15 Feb 2022

Concise views on global finance: Farmers and oil barons are set for more fights after a recent study showed the biofuel is likely at least 24% more carbon-intensive than gasoline. They are missing the bigger threat.

Guest view: Fed hikes spell emerging-market strain

4 Feb 2022

Poorer indebted economies face growing difficulties as the U.S. Federal Reserve signals its readiness to raise interest rates. William Rhodes, former president of Citibank, and economist Stuart Mackintosh lay out what creditors, borrowers and the IMF can do to avert a crisis.

Ambani brings big guns to India’s streaming wars

28 Jan 2022

The Reliance boss is close to a tie-up with James Murdoch and Uday Shankar that will turn his TV network into a formidable rival to Disney, Sony-Zee and Amazon. It’s likely to add more ammunition to the battle for content. That will please viewers but also lead to overspending.

India Insight: Narendra Modi’s sale of the century

24 Jan 2022

The prime minister is taking a calculated risk with a record IPO of $200 bln Life Insurance Corp. It will attract millions of first-time investors and boost the country’s spending power. How, and whether, that will affect the financial system’s shock absorber is a big question.

Sri Lanka debt pain will go from China to Wall St

11 Jan 2022

The poster child for Beijing’s “debt-trap diplomacy” is asking for easier repayment terms amid a worsening financial crisis. Defaulting on U.S. dollar bonds may be a better option. That would help Colombo kick a credit addiction as worrying as its growing dependence on China.